- Net sales are recovering from the coronavirus pandemic crisis while margins have not fallen as much as one would expect.
- Iron ore prices are stabilizing after astronomically high valuations, and this should improve profitability, but copper and aluminum keep raw material costs high in the Air and Liquid Processing segment.
- The company's headwinds are not related to company-related issues, but more to the industry it operates in.
- The turnaround depends on the evolution of these headwinds, which escape the control of the company.
- I believe this represents a good time to acquire shares in this almost century-old company.
For further details see:
Ampco-Pittsburgh: A High-Risk/High-Reward Turnaround Play